Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Nyota Minerals.

Project Description
A definitive feasibility study (DFS) on Tulu Kapi has confirmed a technically feasible and economically robust project.

The project has a maiden Joint Ore Reserves Committee-compliant probable ore reserve of 16.9-million tons, grading 1.82g/t for 986 000 oz of contained gold.

About 170 000 oz of the current inferred mineral resource is located within the designed openpit, which is expected to eventually be converted into an ore reserve, either through additional infill drilling or, more likely, grade control drilling prior to mining.

The conversion from waste to ore will increase the amount of gold recovered and reduce the waste-to-ore stripping ratio and is expected to increase the life of the project and improve project economics.

The DFS envisages an openpit mine producing an average of 105 000 oz/y of gold at steady state, at an average grade of 1.82g/t, with gold production of 924 000 oz over the proposed project life.

The mine design consists of a single openpit, with estimated dimensions of 1 150 m (north to south) by 730 m (east to west) and a maximum depth of 300 m.

The openpit will be mined using conventional openpit mining methods – drilling and blasting of the ore, waste rock and excavation and hauling – using 90 t trucks and matched excavators.

Value
Initial capital costs are estimated at $221-million, excluding contingency, but including working capital and construction contracts.

Duration
A timeframe has not been confirmed.

Latest Developments
The fiscal terms of the proposed mine development are subject to the mining licence agreement, which is in the final stages of negotiation with the government of Ethiopia.

Nyota will continue to optimise the DFS parameters in the coming months, while negotiations in respect of the mining licence for Tulu Kapi are concluded.

Key Contracts and Suppliers
Senet (lead engineer); Golder Associates (environmental- and social-impact assessment and design of the tailings storage facility), Wardell Armstrong International (resource estimation and mine design/planning) and the International Finance Corporation (finance).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Nyota Minerals CEO Richard Chase, tel +44 (0)20 7400 5740 or email richard.chase@nyotaminerals.com; or contact Anthony Rowland (business development), tel +44 (0)20 7400 5740 or email anthony.rowland@nyotaminerals.com.
Senet, tel +27 11 409 1300 or fax +27 011 409 1301.
Golder Associates, tel +27 11 254 4800 or fax +27 11 315 0317.
Wardell Armstrong International, tel +44 845 111 7777.
International Finance Corporation, tel +1 202 473 3800 or fax +1 202 974 4384.